Eurozone confidence drops in August amid rising inflation
Economic confidence in the eurozone fell in August, hitting a 19-month low amid surging inflation, according to data released on Tuesday by the European Commission.
The EC’s economic sentiment indicator for the bloc declined from a revised 98.9 in July to 97.6 in August - the worst level since February 2021 - and was a touch below consensus expectations for a reading of 98.6.
Meanwhile, the employment expectations index for the eurozone stabilised after two months of significant losses, rising 0.8 points to 108.0.
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said: "The ESI is consistent with the message from the PMIs and national surveys in the major economies. The headline was falling before Russia’s invasion of Ukraine, probably thanks to the outlook for a fading reopening boost to growth later in the year.
"The downward trend has intensified since the war, reflecting the rise in uncertainty and economic shock from the disruptions to energy markets. It is difficult to see a change in this trend anytime soon. The headline was pegged back by weakness in manufacturing and services."